Monday, October 3, 2011

Is AMR Headed For Bankruptcy?

Shares of AMR (NYSE: AMR) sank on Monday on mounting fears that the carrier may be forced to seek bankruptcy protection. It is headed toward a fourth consecutive annual loss, spurring bankruptcy speculation, as a slowing economy fuels investors’ belief that air travel will slump. However, CNBC's Phil Lebeau said the carrier is not considering bankruptcy.

A Chapter 11 filing “is certainly not our goal or our preference,” said Andy Backover, an American spokesman. “We know we need to improve our results, and we have a sense of urgency as we work to achieve that.”

The company doesn’t comment on its share price, he said.

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